Key TakeawaysElevance Health (ELV) reported a Q4 2025 adjusted EPS of $3.33, exceeding estimates of $3.10, but missed on operating revenue and provided a 2026 adjusted EPS outlook of at least $25.50, below analyst expectations of $26.99.Danaher (DHR) delivered a strong Q4 2025 performance, with sales reaching $6.84 billion (above estimates of $6.79 billion) and adjusted EPS of $2.23 (beating estimates of $2.16), while its 2026 adjusted EPS guidance of $8.35 to $8.50 aligned with estimates.RTX (RTX) received ...

Summary of Key Points from the Conference Call Industry Overview - **Industry**: Taiwan PCB & Laminates, specifically focusing on the ABF (Ajinomoto Build-up Film) and BT (Bismaleimide Triazine) sectors - **Context**: The conference call discusses the recent price adjustments in the ABF CCL (Copper Clad Laminates) and Prepreg sectors announced by Resonac Core Insights - **Price Increase Announcement**: Resonac announced a 30% price increase for all CCLs and prepregs, effective from March 1, 2026, primarily due to rising costs of T glass and other raw materials like copper foil [1] - **Market Implications**: The price increase indicates a server shortage in T glass, suggesting strong demand from AI-related chips with larger body sizes [1] - **Cost Pass-Through**: Downstream ABF substrate manufacturers are expected to pass through these costs and potentially earn premiums due to robust demand [1] - **Future Price Trends**: Anticipation of further price increases in BT CCL in upcoming quarters due to market tightness [1] - **Sector Tightness**: Observations of tightness in the ABF/BT sector, with expectations that more fabless companies may be affected by a widespread substrate shortage in the near future [1] - **Outlook**: The overall sentiment remains bullish on the ABF/BT sector, indicating positive growth prospects [1] Additional Important Points - **Raw Material Costs**: The price adjustments reflect significant increases in raw material costs, particularly T glass, which is critical for the production of ABF substrates [1] - **Demand Drivers**: The demand for AI-related chips is a key driver for the current market dynamics, influencing both pricing and production strategies in the sector [1] - **Potential Risks**: While the outlook is positive, the sector may face risks related to supply chain disruptions and fluctuations in raw material availability [1]

Group 1: Market Overview - The recent market sell-off has significantly impacted technology stocks, particularly Taiwan Semiconductor Manufacturing (TSM) and ASML, presenting a potential buying opportunity for investors [1][8] - The sell-off is primarily driven by fears surrounding President Trump's tariffs, which are not expected to affect the long-term trajectory of these companies [8] Group 2: Taiwan Semiconductor Manufacturing (TSM) - TSM is the leading contract chip manufacturer, producing chips for major technology companies like Apple and Nvidia, which lack their own chip foundries [3] - TSM is experiencing substantial growth in AI-related chips, with a projected revenue increase of 45% compound annual growth rate (CAGR) over the next five years, and overall revenue expected to rise at nearly 20% CAGR [4] - TSM has announced a $100 billion investment in U.S. chip production facilities, in addition to the $65 billion already spent, to meet the skyrocketing demand for U.S.-produced chips [5] Group 3: ASML - ASML is the sole manufacturer of extreme ultraviolet (EUV) lithography machines, giving it a technological monopoly in the chip manufacturing sector [6][7] - The expansion of TSM's production facilities will lead to increased purchases of ASML machines, benefiting ASML significantly [7] - ASML's monopoly status is reinforced by decades of research and substantial R&D investments, making it a stable long-term investment [7] Group 4: Investment Thesis - Both TSM and ASML are currently trading at significant discounts, with TSM down approximately 21% from its all-time high and ASML down over 30% [8] - The current pricing presents a favorable opportunity for investors to acquire these stocks, which are expected to perform well in the long term due to favorable trends in the chip market [9]